PROFOUND MEDICAL CORP. Pioneering a new standard of care in the treatment of prostate cancer
Forward-Looking Statements This presentation and oral statements made during this meeting regarding Profound and its business which may include, but are not limited to, the expectations regarding the efficacy of Profound s technology in the treatment of prostate cancer. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity. The forward-looking events and circumstances discussed in this presentation may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the pharmaceutical industry, economic factors, the equity markets generally and risks associated with growth and competition. Although Profound has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Profound undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law. 2
Investment Highlights Commercializing a new, minimally invasive technology (TULSA) for the ablation of targeted prostate tissue Received CE Mark approval in April 2016 for TULSA-PRO TM Large and growing market opportunity; significant unmet medical need Strong IP portfolio Attractive razor/razor blade revenue model MRI installed base with strong partnerships Near- and mid-term milestones offer value inflection opportunities 3
Prostate Cancer Incidence 1 in 7 men will be diagnosed with prostate cancer in their lifetime American Cancer Society, www.cancer.org 4
Large & Growing Market # of Procedures (EU & US) 500,000 new patients per year 850,000 procedures per year US$40 Billion Market Surgery $18B Radiation $20B HIFU $0.9B Cryo $0.7B idata Research 2012 US and European Urological Market Reports 5
The Problem While prostate cancer survival rates are high, the current therapies have undesirable complication rates Impotency Severe Incontinence Bowel Problems 80% Surgery 15% Surgery 25% Radiation Potosky et al, Five-year outcomes after prostatectomy or radiotherapy for prostate cancer: the Prostate Cancer Outcomes Study (PCOS), Journal of the National Cancer Institute, 96(18): 1358-1367 (2004) 6
What If? What if you could treat localized prostate cancer in 2 hours? Minimally invasively With real-time image guidance In a single treatment With the same or even better outcomes than surgery or radiation 7
Our Solution 3 1 4 5 2 6 1. Ultrasound Applicator 2. Endorectal Cooling Device 3. Positioning System 4. Positioning System Interface Box 5. System Cart 6. System Electronics Disposables Capital Equipment 8
Our Solution 9
TULSA-PRO Procedure Click here to view Animation The Procedure 10
Proven Accuracy Testing in prostates showed excellent agreement between MRI temperature measurements, histology and contrast-enhanced MRI MR Thermometry Histology Contrast-enhanced MRI 0% cell kill all tissues outside are normal 100% cell kill all tissues inside are killed Prostate region of non-perfusion Chopra et al, Phys Med Biol. 2009; 54(9): 2615-33 11
Reduced Tissue Damage Our preclinical study observed 83% of urethral tissue was preserved after treatment Inside-Out Outside-In UA 12
Lower Complication Rates Profound s technology results in fewer significant complications *Thompson (Chair) et al for AUA Prostate Cancer Clinical Guideline Update Panel (2007) Guideline for the management of clinically localized prostate cancer: 2007 update. The Journal of Urology 177(6): 2106-31 *PMI 12-month Phase 1 Trial, GCP-10102 Table 10. 13
Phase I Clinical Trial 12-month data The Phase I trial has demonstrated that MRI-guided TULSA provides accurate treatment planning, real-time thermal dosimetry and precise control of prostate ablation to within 1.3 mm, with a well-tolerated side-effect profile. Outcomes: 30 patients treated with at least 12 month follow-up No intraoperative complications, no rectal injury or fistula Erectile dysfunction rate of 8% (IIEF item 2 2) At 12 months, only 1 patient (3%) with Grade 1 urinary incontinence (no pads) Functional quality-of-life outcomes back to baseline levels 14
Current Therapies Current techniques may damage tissue far outside the therapy target area, or risk damage to critical structures Radiation HIFU Radical Prostatectomy Non-invasive Outside-In Risk associated with treatment of surrounding tissue High rate of side effects, including damage to bowel Non-invasive Outside-In (Transrectal) High rate of side effects, including thermal damage to bowel Limited to average or smaller size prostates Invasive surgical technique Removes the gland and related tissues High rates of side effects such as incontinence and impotency Success related to skill of surgeon Non-invasive Inside-Out (Trans-urethral) Precisely treats prostate tissue with minimal damage to nearby critical structures Low rate of complications 15 15
Advantages Safe, fast and accurate Millimeter accuracy ablates cancerous tissue while sparing critical structures Quick procedure with single treatment and rapid recovery time Minimally-invasive using thermal ablation to heat prostate from inside-out Guided by real-time MR imaging with temperature (thermometry) feedback Technology compatible with leading MRI platforms 16
Opportunity is Well Protected Strong IP Portfolio: 6 patents issued in the United States 6 patents pending in the United States 9 patents pending foreign applications 17
Strong Market Access Through Key Partnerships Joint Development Agreement announced July 2015 to support TULSA technology on Philips' Ingenia and Achieva 3T MRI systems; Sales and Marketing Agreement announced May 2016 to advance TULSA-PRO commercial launch Strategic Collaboration Agreement announced March 2016 to co-market and co-sell into the Siemens installed base of customers; each partner will invest $2 million in marketing, educational and sales activities Based on early discussions with GE, we have initiated validation testing of TULSA-PRO with GE 3T MRI Systems 18
Strong Leadership Executive Team Steven Plymale Ron Kurtz Goldy Singh Hartmut Warnken CEO (Xltek, CryoCath, Cedara, Claron, Bluehaven) VP, Engineering (Xltek) VP, Quality & Regulatory Affairs (Xltek, C.R. Bard, Philips Medical, Natus Medical Inc.) VP, International Sales (IMRIS Pte. Ltd., IMRIS Germany GmbH, IMRIS KK Japan) Board of Directors Jean-François Pariseau Damian Lamb Steven Plymale William E. Curran Arun Menawat Jonathan Goodman Partner, BDC Venture Capital Co-Founder & Managing Director, Genesys Capital Partners CEO, Profound Medical Corp. Previously President & CEO, Philips Electronics North America President & CEO, Novadaq Technologies Inc. President & CEO, Knight Therapeutics 19
Solid Path to Commercialization 20
Recent & Upcoming Milestones Received CE Mark approval in April 2016 for TULSA-PRO TM Sale of first TULSA-PRO TM to ResoFus Alomar in Spain in April 2016 Granted IDE Approval from the FDA for Pivotal Trial Pivotal Trial commencement Expansion of strategic collaborations / distributor partnerships Commercial launch Canada Solidify reimbursement pathway 21
In Conclusion TULSA poised to be a game changer in the clinical management of patients by ablation of targeted prostate tissue Large and growing market opportunity; significant unmet medical need Near- and mid-term milestones offer multiple value inflection opportunities Technology well protected by strong IP portfolio CE Mark obtained Attractive razor/razor blade revenue model Well established care delivery infrastructure A GAME CHANGER In the clinical management of prostate care Proven leadership team 22
Capitalization Exchange & Ticker Cash (@ March 31, 2016) Debt: FedDev HTX Knight Common Shares (@ March 31, 2016) Basic, Fully Diluted TSXV: PRN $16.9MM $0.8MM $1.3MM $4.0MM 39.5MM; 43.8MM Significant Shareholders: BDC 24.8% Genesys 23.1% Knight 7.7% 23
TSXV: PRN profoundmedical.com 647-476-1350